Trends in the Area of Telecommunications


Trends in the area of telecommunications

Telecommunication industry comprises of devices, systems, and technologies that avail communication over long distances. Today’s telecommunication industry has brought a change from wired telephones and has introduced satellite communications, optical fibers, internet, and wireless communications. There are more subscribers of wireless communications. Their prices are attractive and their services are competitive. Telecommunication sector offers services that are internet enabled, entertainment, infotainment, news among other critical communication. The industry is classified into telephone, cable communication, internet service providers, and satellites. There are leading participants in telecommunication market. They include century link Inc, Sprint Corporation, AT&T Inc, Comcast Corporation, Verizon Communications, T-Mobile US Inc, Direct TV Group, and Time Warner Cable Inc.

Telecommunication sector is a vibrant ecosystem that has recorded continuous growth and expanded in its products, technology and service companies. More growth is expected in its sub-sectors. Areas such as IoT will be the leading source of expansion in nascent markets, which is expected to reduce costs, improve efficiency, productivity, and increase services offered to customers (Wigginton, 2016). Digital technology will connect most homes, owners of smart phones and offer solutions to cars connected to technology. Consumers obsessed with their digital devices will increase in number and promote growth in Telecommunication sector (Transparency market research, 2015). Currently, surveys conducted by Deloitte’s 2014 Global Mobile consumer survey, indicate that 90% of consumers check their smart phones one hour after waking up and 25 % of those having phones check them more than 50 times per day.

Users of smart phones are also at an advantage of growth in their video and audio streaming. More customers are today using at least one gigabyte of data each month. The rate is expected to grow by 30%, which will stream television, music, and films (Wigginton, 2016). Reports collected by Deloitte Company on mobile broadband spectrum indicates that coming years will be years of streaming where spectrums will be very important with 4K screens appearing on most mobile devices. It is expected that mobile broadband ecosystem will greatly contribute to the economy of US. Studies done indicate that introduction and growth of 4G networks will increase GDP growth by $150 billion. The change will encourage federal government policy and incentive auctions in US to meet demand of their consumer and businesses.

Consumers will experience more opportunities of growth. There will be more introduction and growth of wearable such as glasses, smart watches, and exercise bands among others, which will expand their market.

Increases in Internet of Things among other vertical sectors will lead to increase in need of solutions in cyber security and privacy (Wigginton, 2016). Telecom sector will be in a better position to collect and analyze rich data of customers which will enable them meet their needs appropriately and in additional new ways.

There will be more growth in financial metrics, which include innovation and markets, operating metrics that  cover acquiring customers, retaining them and maximizing their potential. Moreover, there will be improvement of performance, which will drive their sustenance value.

More opportunities will be available in mobile services and vertical markets. Automotives will get a boost with connected car-solutions. mHealth will expand as manufacturers of devices and refocus on its ability to generate revenue. Moreover, smart cities will also increase (Wigginton, 2016). Near field, communication (NFC) will greatly and expansively offer mPayment services and benefits to its financial partners and their retail sectors. Today there is a small market of consumers using NFC and are appreciating the experience. At least 31% consumers have their phones enabled with NFFC where they use the service each month.

Broadband coverage will be enhanced and expanded greatly. Examples include nanosatelites, 4G, small cells, distributed antenna systems (DAS). Carriers will increase infrastructure, content, and equipment providers. Telecom market sector will increase in areas such as Big Data management, M2M, collaborative consumption, cloud computing,5G,  mobile broad band, OTT services, wearable among others in the coming years (Tiwari, 2016). The growth will increase more in 5G infrastructures. Access of mobile broadband through 3G network and 4G/LTE network will expand since users will add tablets, smart phones, and modems as alternative means of communication and connection to cloud computing. As a result, downloaded data from mobile phones will increase and almost double in the next years. Moreover, there will be development in M2M and IoT infrastructure, which will add to the development of smart homes, cities, and buildings. Use of 4G LTE will be on the increase.

Increase in deployment of fixed broadband network and policy plan will be effective in coming years. Cloud computing will be virtual in larger markets based in developed countries. Most vendors of cloud computing are now entering in new markets to introduce their technology and mobile cloud computing (Tiwari, 2016). There will be more interests in 5G technology, which has been named IMT-2020 by ITU. Wireless devices will soon overtake wired devices considering IP traffic, which will account for additional 50% internet traffic. Physical systems of cyber will build on IoT/M2M since it is the originator of infrastructure that is sensor-driven. Telecom market in UK is faced by great competition in its broadband and mobile sectors and sector that distributes digital information. As a result, the prices will fall and capabilities of network will expand in following years.



Trends in the area of telecommunications by 2020 and beyond

The last twenty years have encountered technical transformation and waves of information that have increased growth in the telecommunication industry. The growth leads to ages where there will be greater penetration by 2020 and beyond whereby the industry will be a completely new institution. Areas hoped to encounter most changes include

Integration with providers of content and services. It will be brought by a small proportion of value chain of information captured by connectivity; in addition, deliverers of content, services, and products will capture more in the society (Labbi, 2015). By 2020, content companies will acquire major telecommunication companies.

IoT will be a major trend in telecommunication industry since it will aim at connecting all objects with human beings. All devices will be connected to the internet which will lead to addition of billions data sources that are connected globally (Labbi, 2015). . Volumes of data will experience astronomical growth due to increase in connected devices. Human beings will enter Zettabytes worlds per year and exabytes volumes.

Mobility:  there will be a growth in mobile connectivity even among poor populations and developing worlds. Mobiles will be cheaper, useful, and convenient making connectivity of landlines and option for everyone.

Market saturation; by 2020, digitization will be more efficient which will also force the older population to enter in fully digitized retirement communities and living facilities. The world around will force them to use emerging technologies to fit among people (Labbi, 2015). As a result, they will use extra bandwidth than their carriers allowing more penetration in the market and causing saturation.

Security; there will be higher demand in security measures to fight new threats that will have emerged. More customers will ask for proactive protection from value chains of internet. Most people will depend on carriers to innovate more on technology and offer solutions to threat. Moreover, carriers will enjoy a boom in their sales of security measures.

Overpopulation and development of new subscribers

Internet of Things will open new opportunities for the increasing population. Problems of shortages of energy and mass wastage of energy will increase. Researches done by United States department of energy indicate that loss of energy today is approximately 67% of total energy produced (Labbi, 2015). . Internet of Things issues the state as a blue print for telecom and IT industries. It asserts that by 2020 the ratios of communications between humans and machines will get to 30:1, which will permit operators to extend their base for subscribers from 6 billion people to more than 50 billion who will use trillion objects and machines. As a result, a new door will be opened to allow surpassing population and upcoming subscribers in the telecom industry.

Increase in voice communications

There will be increase in voice communications and services. Increase in mobile broad bands will contribute to rapid growth of industries. Revenue used in voice services has accumulated and declined at times due to developments in mobile communication in the last decade (Labbi, 2015). . Mobile broadband has developed and brought human beings in new ubiquity heights. There has been a terminal network, which has brought an ecological environment that has added to experience of broad bands. Most costs and traffic challenges will be covered promoting development of industries. Operators will achieve sustainable growth after developing services in mobile broadband other than voice communications.

Cloud computing

New models of business will be explored with cloud computing setting forth-new opportunities. Cloud computing will take advantage of popular broad bands (Labbi, 2015). . Cloud computing takes a form of information power plant taking the role of overturning hardware, software, and media. People will move from buying products and concentrate with buying services. Operators will use cloud computing to develop and extend the value of network through surpassing pipeline.

Extension to other industries

Telecom will be surpassed and most people will extend to other industries, which will bring a revolution experience to home networking. As a result, more markets will be created. The big field of battle lies with home networking and convergence of network for telecom, internet, and TV. Bi-direction of telecom and its high bandwidth converges network, which offers operators strategic opportunities to enter in new markets and surpass telecom.

Providers of communication services will be stimulated to change into a center of opportunities that strengthen five digital forces (Labbi, 2015). These are big data and analytics; cloud computing, mobility and pervasive computing, artificial intelligence and robotics that will match their services, products, and business processes. Lifecycles of products will be reduced and the challenges encountered reduced. There will be more customer engagements and high churn rates.

Leading market providers will construct portfolios in telecom services around delivery factories that are industrialized emphasizing much on business acumen and transformations of experiences in digital customers. It will offer solutions and platforms fit for purposes such as pre-integrated applications such as OSS/BSS/Enterprises.

There will be simplification of businesses, processes, systems, and products. In addition, market partnerships and strong alliance will emerge with vendors of telecom products such as Oracle, Net cracker, Amdocs and Ericson to few vendors with leading products. Example Capgemini has launched DCX that has brought together capabilities associated with experience of customers as initiative of top-line corporate (Labbi, 2015). Capgemini has continuously included solutions in business management offered insights and data to top line corporate initiative to meet the emerging needs of the market such as Big Data and analytics for today and in the future. It has also offered communications transformation platform for pre-integrated OSS/BSS/Enterprise applications.

Telecommunication area has had many innovations; first, operators have lowered their R&D activities and are now concentrating on innovations that are short term. They are combining technical advances with billing systems. Moreover producers of equipment have absorbed long-term R&D activities with operators are concentrating on hardware and software

. As a result, there are higher competitions in price and service quality (Henten,Falch, & Tadayoni, 2004). There have been transitions from 2G systems to 3G systems, which have improved communication. Markets have liberalized and bonded telecom operators and manufacturers of equipment. Moreover, there has been division of labor in telecom industry. As a result, of labor division in R&D activities and globalization of manufacturers of equipment more characters have increased in service development.

All operators have the opportunity to buy similar equipment and communication platforms. Innovations are easily copied which has increased competition in prices. New entrants in telecom sector are facing great difficulties as they try to get market for their products (Henten, Falch, & Tadayoni, 2004). Investment indexes for EU countries have marked a considerable difference in the past 10 years where many countries have increased levels of investment after connection with liberalization of telecom services. There is a positive correlation between competition in markets and investments in telecom industries.

Telecommunication industry will reap great benefits of monetizing network investments in broadband infrastructure.

Operators will earn benefits of increasing consumptions of data because many markets will grow. Example LTE will offer opportunities for creation of larger allotments of data in comparison with 3G (at higher prices) which will be supported by capable devices. There will be emergence of 4K video that will be accompanied uploads from smart phones that will drive huge data consumption.

There will be building of momentum around voice over Wi-Fi and VoLTE, which will later on join as a proposition that is integrated (Mason, 2015). It will also use similar IMS components. There will be more launches driven the urge to address issues of coverage and will also encourage operators to evolve communication app as native devices and over-the-top (OTT) extension service.

There will be huge market propositions in fixed-mobile service bundles that will extend beyond markets like Portugal, France, and Spain. There will be an increase in the pace of consolidation of transformative market.

There will be implementation of policy and prioritization features in Operator LTE networks that will aim at supporting voice and video services. End-to-end management of services focus will be a worldwide phenomenon.

Most operators will deploy VoLTE services while others will market HD voice and quality where their value is uncertain (Mason, 2015). In addition, one operator will launch commercial Embms service that support multicast video services that support sports among other worldwide events.

Operators will continue offering differentiated services specifically for medium-sized enterprises (SMEs). As a result, management of hierarchical billing and customer, self-service will be enhanced.

Operators will rollout management of identity for SME services and support trends such as bring-your-own-device (BYOD). The focus will be great in North America since AT&T together with Verizon is currently taking advantage of the opportunity. Operators will churn from selling their data to advertisers and will analyze customer data for use by offers of real time.

Monetizing and digitizing infrastructures

Telecommunication sector aims at digitizing and monetizing infrastructures and traffic of data. Wireless and wired carriers have undergone a rapid shift in technology. Telecom industry is aiming at fulfilling needs of their consumers such as offering beta-level products, making demand of their consumers more reliable and secure, providing high quality, dependable and well-managed networks.

Telecommunication industry has adopted connected digital technologies and consumer applications, governments and enterprises. Digitization has changed the view of most telecommunication operators and has helped them to make decisions. In addition, the trend has monetized infrastructure investments and exploded traffics of data (Friendrich, Hall, & EL-Darwiche, 2016). It has also improved new abilities that are required, rationalized products and offered more services. Moreover, it has improved the experience of consumers and evolved portfolio of their assets and models of their businesses. Although the revenues of global operators are decreasing, stagnating, and increasing their capital expenditures, over the top players such as audio and video services like Sports are increasing in number and gaining popularity. Most telecom operators who are more aggressive are doing better than their counterparts who are conservatives.

Digitization of the core business

Operators in most regions have digitized their businesses after realizing that they earn more benefits such as enhancing revenue systems, consumer satisfaction and saving on costs. They have embraced automation of services that are more efficient and straight to use when processing financial transactions. Many companies have also added legacy architectures, systems, services, and products that are complex and ones that give digital experiences. Their sizes and agility attract more people in telecom companies. The services offer business processes that are friendly to customers than older systems (Friendrich, Hall,& EL-Darwiche, 2016).

Telecom providers are trying hard to offer services that have high quality and a reliable state art. They are offering contents that are fresh on their mobiles and desktop platforms. Their websites are friendly to customers since they have online billing services, scheduling and support on their accounts. There is also trouble-shooting services. Their sales have security and expertise, authentification of identities and billing to their business customers. They make money from data that flows through their networks by using experience to price them, give in phases free and unlimited free data plans as well as promoting consumption of contents that have heavy data.

Companies are investing in new networking technologies like 4G networks and deploying 5G networks. They are getting funds from optimization of operation costs through use of small-cell networks that efficiently regulate spectrums and improve performance of networks using virtualization and software. Telecom industry is upgrading its networks required to grow in traffic and increase revenues generated from that traffic.

Digitization of industries

The trend in telecommunication industries aims at digitizing all things and devices using networks to form Internet of Things (IoT). The plan is continued by the fact that price of connection is decreasing together with the price of smart phones and tablets declining and becoming powerful and ubiquitos. Telecom companies are adding more network traffic and monetizing it through addition of more services. Example AT & T in U.S. is today working with IBM on smart cities program(Friendrich, Hall, & EL-Darwiche, 2016). Spain Telefonica is offering an IoT product named Thinking Things that allows people to develop programs to change climate and lighting of their rooms, buildings, and offices, which assists in controlling interaction of their environment with data.   Moreover, UK’s Orange Company has liaised with other companies such as Nepresso and Coca Cola to launch a machine-to-machine (M2M) communication system. A firm in India Bharti Airtel has formed a joint venture with State Bank of India to develop apps in mobile banking meant for people who rarely access local branches. The service is offered to most industries, and equipments to meet individual needs. Security strategies to safeguard personal information, which includes conducting, benchmark activities and setting standards for companies and machines is also in the process.

Building digital ecosystems

Telecom providers have began to grow innovative digital ecosystems that are founded in acquisitions of joint ventures and internal R&D. example Telia Sonera in Sweden has improved Zound industries, which offers fashion accessories in electronics. Global operators have found personal incubators and venture funds focusing their efforts in digital innovation. They have created offices that have satellites in the region of Silicon Valley to help them access ideas to use in servicing next generation (Friendrich, Hall, & EL-Darwiche, 2016). Companies such as Apple and Google are involved in innovating digital ecosystems through offering communication, entertainment, and shopping, financial services among others.

They are developing application programs, interfaces used to create apps and offer analysis of huge data and programs that facilitate mobile payments and solutions in mobile advertising.

Multi-Gigabit Fiber-Optic race intensifies

Most people are migrating to Multi-Gigabit Fiber-Optic Race because it is faster and secure in transmitting data in long distances. Wire line industry uses gigabit superfast data transmission network that is fiber-based. Example Verizon has completed its new technology trial on state-of-the-art fiber-to-the-premises (FTTP) network meant for residential and business customers (Zack investment research, 2016).  The network is known as next-generation passive optical network (NG-PON2). It has the ability to deliver 10 Gbps (gigabit per second) in its download and upload speed. Entry of Verizon in the race of multi-gigabit poses a threat to Google and Comcast companies. Google-Fiber offers one Gbps speed and Comcast Gigabit Pro gives 2Gbps of the speed of the internet for residential.

Internet TV –Gains Traction

Internet Tv is a trend in telecommunication industry and it is gaining market attraction mostly in U.S. it has created great competition in online video service providers. The video streaming service is offered in low costs and has resulted in cutting of massive cord. Example includes Sling TV, which is available for only $20 per month (Zack investment research, 2016). . It offers channels that are top-rated   with additional packages being offered at $5 in each month. Example Verizon TV operator that is ranked the sixth in payments in U.S. focuses on two viewer categories, internet TV service and fiber-based FIOS TV. Comcast also launches its TV service together with AT &T, which partners with Chernin group in offering same services.

Telecommunication sector has undergone major trends in 2014.

Small cells:

Small cells technology is introduced in telecommunication sector to handle local coverage and issues dealing with capacity. Examples are issues that cover increase in consumption of mobile data. Small cells have enabled users to get faster and better services in crowded areas such as stadiums, shopping malls, and subways (Peeters, 2014).  Downloading of data and uploading is faster and has less challenges. It has been more reliable. It boosts coverage and experience of users in locations that are hard to reach. It has enabled the mobile word to be sharper and of high quality.

4G deployment and LTE-Advanced

Most people in North America and china have now adopted use of LTE-Advanced. The trend is continuing in the world. More people are today subscribing to LTE and moving from Legacy 2G and 3G networks (Peeters, 2014). Introduction of LTE-advanced features begins with carrier aggregation, which enables operators to knit virtually their blocked spectrum in frequency bands that are separate to form contiguous blocks that reduce waste and cost as well as improving the quality of services for subscribers.


Although most investors have focused their attention to LTE access, telecommunication industry aims at introducing volte, which will revive service of mobile voice. The trend hopes to offer a service that has better quality and more individual with more compartments compared to mobile app. It aims to improve services such as Skype and face book. Most operators will migrate to volte because it will enable better experience when communicating. HD voice will enable calls to be made within their networks, which will encourage more operators to add services to volte calls (Peeters, 2014). . Services like web real-time communications will be possible where operators together with enterprises will attach communication services that are rich in web applications which will offer security of connections in their personal networks an dgive them peace of mind.


Network function virtualization is another trend in telecommunication industry. It aims at supporting component virtualization, which will allow a network infrastructure that is flexible and one that underpins shifting of applications and services into the cloud. It also aims at bringing agility and network efficiency together with operations of businesses. Operators will be allowed to support the demands of dynamic subscribers in least costs (Peeters, 2014). . There will be more tools available together with professional services, which will help operators to migrate to NFV in easier ways. There will be virtualization of fixed and wireless access network elements. Techniques such as SDN will enhance flexibility in service rollout where most people will approve it.


Wire line area takes advantage of the critical density of fiber. Vectoring will begin because it removes cross talk between many lines of copper and allows true potential of VDSL2 and G. Fast technologies. Wire line will maximize investments in copper and increase the speed of broadband as the plan of rolling out fiber begins. Increase in rolling out of fiber will continue as wire line and wireless infrastructures continue.

Emerging markets

There will be large markets of use-cases and emerging entrepreneurs all over the world. Wireless and fixed technologies. Mobile phones will also increase in quality and quantity. There will be better quality mobile phones with better voices, energy efficiency and more security aspects such as meta-drivers.

ICT sector

There has been remarkable transformation in ICT sector. It has adopted mobile devices that are enabled with broadband that has accessed the digital world making it pervasive and ubiquitous. Due to the fast move in technology, old models of business are rendered obsolete. ICT industry has migrated from distinct platforms of infrastructure to cloud computing. As a result, there are more innovations with everything becoming a computing device that is connected to the internet (Sanou, 2015). Introduction of apps and m-services has encouraged venturing in all life aspects. Costs of accessing network services have reduced since network opportunities have accelerated. There are self-regulatory solutions that empower customers, educate them and protecting their rights. All users are engaged in a more transparent digital world.

Competition has been protected and promoted by regulations and policies adopted to address changes. Liberalized licensing has formed streamlined processes to enable new competitors enter the market. Market entries are eased by imposing access obligations to significant market power operators that give competitors access to elements of network at lower rates and non-discriminatory terms. There are wholesale broadband networks created by countries to facilitate supply of access services to retail providers of services. Moreover, countries are subscribing to wireless networks due to increase in wireless broadband.

Big data management will shape all sectors of the economy and help in capturing data and information. It will create awareness on risks and benefits to assist in understanding current position of the industry and its future.

Online Consumer protection is on the rise to make sure that internet users are secure to perform all their work. Most economic and social activities will be online. In conclusion, future trend in telecommunication will cover mobile device ecosystems, cloud services, online advertising and media, connectivity and video streaming.





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